Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, October 1, 1993                   TAG: 9310010188
SECTION: VIRGINIA                    PAGE: B-2   EDITION: STATE 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

OVER-BUDGET STATE RENOVATION GETS 2ND PROBE

A Senate Finance Committee panel ordered the General Assembly's Joint Legislative Audit and Review Commission to investigate the renovation of the East Main Street building. The JLARC report is expected by early December.

Gov. Douglas Wilder on Sept. 17 ordered an investigation into possible mismanagement of the $43 million renovation, which is six months behind schedule and $9 million over budget.

Secretary of Administration Ruby Martin and General Counsel Walter McFarlane are conducting the probe ordered by Wilder. The governor said this week that he expects the results when he returns from a trade trip to Europe and the Far East in mid-October.

The renovation is behind schedule largely because work stopped after cancer-causing asbestos was found in March. Also, the state agency that will be moving in, the Department of Information Technology, has repeatedly changed building plans.

Among those called Wednesday before the Compensation and General Government subcommittee of the Senate Finance Committee was Raymond Patterson, director of the Department of General Services.

Patterson denied being influenced to allow the firm of Daniel A. Hoffler, treasurer of Wilder's 1989 campaign for governor, to bid on the job. State documents and interviews show a committee of department officials had recommended Armada/Hoffler Construction Co. of Chesapeake not be allowed to bid, based on unfavorable references and a financial review.

After Patterson ordered Armada/Hoffler back on the bid list, the firm submitted the low bid of $15.6 million. Armada/Hoffler's contract has risen to $21.2 million.